…according to the WSJ (HERE).  Looks like it’s pretty hard not to fall of the cliff…

…or so says Nancy Pelosi.  She claims that unemployment checks are the best way to turn the economy around because the money is spent quickly and thereby stimulates economic activity. She even claims that unemployment checks create jobs.

I’m not against extended unemployment benefits in dire economic times, but I do have a problem with Nancy Pelosi stating what economists say. Under her logic the government should give everyone a check so they can spend it today (just borrow the money from the future like Keynes said).  Keynesians tend to believe this, most of the other economists aren’t so sure.

It’s hard to trick the modern economy.  Our markets are smart enough to realize you’re just robbing Peter (our grandchildren) to pay Paul (our big government spending politicians today). Unfortunately we have politicians from both parties who are more than willing to rob every generation down the line to spend more money now.

Let’s hope our future generations of politicians study economic theory discovered since the 1930′s…